A notorious group known for their fraudulent activities on blockchain platforms like Magnate, Kokomo, and Lendora is now targeting Blast. They have recently transferred approximately $1 million in laundered funds to finance their scams.
According to blockchain investigator ZachXBT, the funds were initially moved from an Ethereum address associated with previous scams to another address on the Polygon network. Later, the assets were converted to Wrapped ETH (wETH) and transferred across multiple blockchain networks using bridging services like Orbiter and Bungee.
Eventually, these funds were used on the Blast platform to purchase LEAP tokens, increasing liquidity and setting up another trap for unsuspecting victims. ZachXBT also suspects that the same individuals are likely behind another ongoing project called ZebraLending on the Base platform, which currently has a total value locked (TVL) of approximately $311K.
Source:
Zachxbt
This group has a track record of launching various projects that attract significant TVL, only to disappear with the funds later on. Their tactics often involve creating fake Know Your Customer (KYC) documents and collaborating with questionable auditing firms to create an illusion of legitimacy.
They have targeted a range of platforms, such as Base, Solana, Scroll, Optimism, Arbitrum, Ethereum, and Avalanche, demonstrating their adaptability and widespread presence in the blockchain industry.
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The repeated occurrence of these scams highlights the need for caution within the blockchain community. Investors are strongly advised to exercise increased vigilance, particularly when it comes to new projects on platforms like Blast that involve significant fund transfers.
Verifying project credentials, reviewing audit reports, and understanding the flow of fund transactions are crucial steps individuals can take to protect their investments. Additionally, community members are encouraged to share information and support each other in identifying suspicious activities to prevent further victimization.
In a separate incident, a nonfungible token (NFT) game called Munchables, built on Blast, fell victim to a $62 million exploit on March 26. Munchables acknowledged the breach and stated that they were monitoring the perpetrator’s actions and attempting to halt the transactions.
After the launch of Blast’s mainnet on February 29, approximately $400 million worth of Ether (ETH) was withdrawn from the Ethereum layer-2 network, unlocking nearly $2.3 billion in staked crypto that was previously locked up. Just days before the mainnet launch, Blast surpassed $2.1 billion in total value locked (TVL), with its mainnet set to go live at the end of this month.
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